This transcript is from the "Up In Your Family Business" podcast hosted by Todd Rimer, featuring an interview with Zach Burgess, owner of Burgess Auctions LLC from Whitestown, Indiana. The episode focuses on how auctions can be a strategic tool for businesses to sell assets without leaving money on the table.
Todd introduces the podcast by explaining that auctions can bring in 30-50% more value than selling privately. He introduces Zach Burgess, who has 28 years of experience and has conducted thousands of auctions, helping businesses reach buyers locally, regionally, and worldwide.
Zach shares his background, explaining that he was introduced to the auction business at age 10-12 by his father, who was an auctioneer. After high school, instead of college, his father paid for him to attend auction school. He graduated from Reppert School of Auctioneering in Decatur, Indiana in 1995 and became licensed in 1996.
The conversation explores how Burgess Auctions operates, with Zach explaining they have about four core employees plus contractors when needed. They conduct both on-site and online auctions, with five scheduled before Thanksgiving alone. Zach mentions they sell a wide variety of items, from estate sales to equipment, vehicles, jewelry, and even unusual items like high-end yarn.
Todd and Zach discuss the benefits of auctions for businesses. Zach shares an example of helping one of Indiana's 25 fastest-growing companies liquidate $1 million in inventory that no longer served their purpose as their business model changed. He explains that auctions help businesses free up space and capital.
Zach emphasizes that auctions can significantly increase the value received compared to private sales. He gives an example of a skid steer from a concrete business liquidation that was valued at $8,000-$10,000 but sold for $12,000 at auction. He states that the auction method exposes assets to the market and invites the marketplace to determine fair value.
The conversation covers how Burgess Auctions markets to potential buyers, using targeted strategies to reach the right audience. Zach explains they're part of Marknet Alliance, a group of about 85 auction companies nationwide that share auctions and work together. This allows them to reach buyers globally.
Zach describes how the auction business has evolved over his career, from paper clerking tickets in the beginning to computer systems in the late 90s, online-only auctions starting around 2009, and now simulcast auctions that combine live audiences with online bidding.
The podcast concludes with Zach advising listeners to consider the auction method of marketing, noting it has worked since ancient Rome and works for every asset class. He shares that they've sold 10 pieces of real estate so far that year, each bringing $20,000 to $150,000 more than the sellers wanted. Zach demonstrates his auctioneering skills before the interview ends.
Introduction to the Podcast and Guest 00:00:04
Todd Reimer introduces the "Up In Your Family Business" podcast, explaining that the episode will focus on how businesses can sell assets without leaving money on the table through auctions. He mentions that well-planned auctions can bring in 30-50% more value than selling privately. Todd introduces Zach Burgess, owner of Burgess Auctions LLC from Whitestown, Indiana, who has 28 years of experience and has conducted thousands of auctions, helping businesses reach buyers locally, regionally, and worldwide.
Zach's Background and Entry into the Auction Business 00:03:10
Zach shares that he was introduced to the auction business at age 10-12 by his father, who was an auctioneer. He would help his father with baseball card auctions. After high school, instead of college, his father paid for him to attend auction school. Zach graduated from Reppert School of Auctioneering in Decatur, Indiana in 1995 and became licensed in 1996. He mentions there are about 10-12 auction schools nationwide.
Burgess Auctions Operations and Scale 00:02:21
Zach explains that his company has about four core employees plus contractors when needed. They conduct both on-site and online auctions, with five scheduled before Thanksgiving alone. The auctions range in value from a couple of thousand dollars to as much as $6.5 million. Zach mentions they sell a wide variety of items, with estate auctions, equipment, and vehicles being their most common categories.
Common Reasons Businesses Sell Assets 00:06:02
Zach shares an example of helping one of Indiana's 25 fastest-growing companies liquidate $1 million in inventory that no longer served their purpose as their business model changed from retail to wholesale. He explains that auctions help businesses free up space and capital when their business focus changes. Zach emphasizes that every auction is different, and every client has different needs, wants, and goals.
Value of Auctions Compared to Private Sales 00:12:32
Zach emphasizes that auctions can significantly increase the value received compared to private sales. He gives an example of a skid steer from a concrete business liquidation that was valued at $8,000-$10,000 but sold for $12,000 at auction. He states that the auction method exposes assets to the market and invites the marketplace to determine fair value. Zach mentions that a typical household holds about $5,000 worth of value in used furniture and furnishings.
The Auction Process and Logistics 00:13:43
Zach explains that typically the buyer is responsible for transportation and logistics after an auction, though they can assist with partners if needed. He describes how they customize their fee structure for each auction, usually quoting a commission rate that covers all expenses, including labor, marketing, advertising, and equipment rental. Zach emphasizes that their approach varies based on the scope of work and asset class.
Marketing Strategies and Global Reach 00:25:09
Zach describes how they market auctions to potential buyers, building buyer personas and targeting marketing through Google, Facebook, and other digital methods. He explains they're part of Marknet Alliance, a group of about 85 auction companies nationwide that share auctions and work together. Zach shares a story about selling 1880s telegraph equipment to buyers in Canada and Virginia, demonstrating their global reach through optimized online listings.
Evolution of the Auction Business 00:29:02
Zach describes how the auction business has evolved over his career, from paper clerking tickets in the beginning to computer systems in the late 90s, online-only auctions starting around 2009, and now simulcast auctions that combine live audiences with online bidding. He explains that while they do fewer auctions now (about 80 per year compared to 150 pre-COVID), this is partly by choice as they've transitioned more to online auctions, which require more work upfront.
Advice for Those Considering Auctions 00:33:11
Zach advises people not to throw anything away before consulting a professional, as they might discard valuable items unknowingly. He recommends calling a reputable auction company for a consultation. Zach notes that auctions are often associated with foreclosures or distress, but argues they should be a first choice rather than last resort. He mentions that the finest things in the world are sold at auction, from racehorses to artwork to Michael Jordan's shoes.
Demonstration and Closing Thoughts 00:43:02
At Todd's request, Zach demonstrates his auctioneering skills. He advises listeners to consider the auction method of marketing, noting it has worked since ancient Rome and works for every asset class. Zach shares that they've sold 10 pieces of real estate so far that year, each bringing $20,000 to $150,000 more than the sellers wanted. Todd concludes by encouraging business owners to take a page from Zach's playbook when selling assets.
Todd mentioned listeners should learn more about Burgess Auctions at BurgessAuctions.com. 00:47:45
Todd suggested business owners should choose the right partner with NAA (National Auction Association) or IAA (Indiana Auctioneers Association) credentials when selling assets. 00:47:32
Zach recommended that people considering selling items should consult with a professional auctioneer before throwing anything away. 00:33:11
Zach advised business owners to consider the auction method as their first choice rather than last resort when selling assets. 00:36:27
Zach suggested that people interested in auctions should check an auction company's website, ensure it's up to date, and review their Google reviews before engaging their services. 00:37:50
